With businesses all over Pennsylvania working their way to comply with the Corporate Transparency Act, now would be a great time to re-familiarize yourself with the BOI reporting requirements. FinCEN-mandated regulations require companies to file BOI, which gives greater transparency into ownership structures.
Businesses that fail to comply may fall under Corporate Transparency Act penalties; hence, timely filing is indispensable for each and every corporation and LLC.
What Is the Corporate Transparency Act 2024?
The Corporate Transparency Act of 2024 generally refers to a federal statute that requires reporting companies to file reports with FinCEN, which disclose the individual owners who directly or indirectly own or exercise control over 25% or more of the reporting company.
Who Needs to File a BOI Report in Pennsylvania?
Any new and existing companies in Pennsylvania, including LLCs and corporations, will report to the BOI if qualified under the Corporate Transparency Act. This will involve any business entity created by virtue of state law and those registered to operate within the state.
Some companies, however, may be exempt from these reporting guidelines. This includes large operating companies, regulated entities, and those inactive entities that meet the specific criteria.
What Are the BOI Reporting Requirements?
The BOI reporting requirements for companies in Pennsylvania shall contain the following information:
- Company information – Legal Name, Principal Place of Business, Jurisdiction of Formation.
- Beneficial Owner information – Full legal name, date of birth, address, and valid identification document.
- Company applicant information – In the case of a newly formed business, it would be required to report who submitted the formation documents.
Corporate Transparency Act Penalties
The Pennsylvania LLC shall abide by the BOI reporting requirements within the deadlines just like other corporations. It shall present the report within a period of 30 days in case any change is brought into the ownership or management of the LLC. It will notify all the changes concerning beneficial owners or the company applicant.
Non-compliance with the Corporate Transparency Act 2024 will result in severe penalties: a fine of up to $500 per day for each day the violation continues, plus possible criminal penalties. It would thus fall upon businesses to make sure they follow reporting requirements put forth by BOI and evade such consequences altogether.
Conclusion
Keep updated with regards to any changes in ownership and then fulfill the BOI reporting requirements in due time to avoid any penalties while keeping your company compliant with the BOI filing requirements of Pennsylvania.